In a climate of changes in the structure of the country, the Argentine Chamber of Electronic, Electromechanical and Lighting Industries (CADIEEL) He highlighted the importance of working together with the national government to find solutions to the loss of competitiveness of the national industry.
“Just over a month before the inauguration of the President of the nation, Javier Mieli, with a rapid deployment of measures and changes to the structure of the country, uncertainty about the future and the subsistence of SMEs remains, in particular, in the electronic, electromechanical and lighting sectors. The measures implemented by the Executive Branch from the DNU, such as the elimination of Law No. 27,437 that established the Buy Argentine Regime, the statements regarding the elimination of Banco Nación and the increase in the PAIS tax, worry the most of 2,200 companies that CADIEEL brings together,” the entity said in a statement.
“From the beginning of the administration we expressed our intention as a Chamber to promote dialogue and work together to equalize the conditions of market participation for our industry, which is an engine of work, well-being and prosperity for the country. We agree with the need to achieve macroeconomic balance and the elimination of the fiscal deficit, as well as the reduction of taxes that affect competitiveness. We have an industry with competitive quality in the world to develop the solutions that our country needs, but it is necessary that the conditions be equalized to be competitive also in production, marketing and export costs,” said the president of CADIEEL, José Tamborenea. , and pointed out that it is one of the sectors hardest hit by the DNU.
The Buy Argentine and Supplier Development Regime had been established to promote the preferential participation of the national industry in public works by the State, contractors or concessionaires that reach a certain amount. This regime allowed local companies producing electronic, electromechanical and lighting inputs, and innovative and knowledge economy startups to be the main supplier of inputs for infrastructure. “The participation of our SMEs in this type of projects returns to the State the direct and indirect tax contribution, due to the generation of qualified employment at the local level and the internal consumption that it promotes, a return that does not occur when turnkey equipment is purchased. hand out,” adds Tamborenea.
The importation of the inputs necessary to produce electronic components in our country was achieved by the increase in the PAIS tax by 17.5%, making competitiveness for local production more complex. To this would be added the withholdings on industrial exports of 15%, if the “Omnibus Law” is approved. At the national level, it favors sectors that import energy products or medical implements exempt from the tax. country and penalizes national manufacturers, who would have difficulties positioning their components in Argentina, as well as exporting technology to the world due to high production costs.
The withholding of exports increases the collection of the National State and lowers the withholding of the provinces that share in profits, consequently, companies lose. Taxes are the same for everyone, but their effect differs and they undermine competitiveness and equal conditions to participate in the markets.
With the intention of working and finding solutions together that enhance work and equal conditions compared to other technology exporting countries, CADIEEL states that it is necessary to resolve the imbalance generated by the PAIS tax for the production and positioning of Argentine technology. in the local market and in the world. They suggest that the ideal uses for low voltage inputs that affect production be unblocked, allowing the entry of the necessary inputs so that the national industry can produce and export at competitive prices.
The manifest intention to eliminate Banco Nación, the main financier of small and medium-sized businesses, is another concern for the sector and a threat to its capacity for development and growth. In this case, it would be necessary to think about future financing mechanisms, as the most competitive countries do in the export of technology.
“As a Chamber, we are open to dialogue and build effective solutions to equalize the conditions for our industry and support the process of improving the quality of life of Argentines, by eliminating the fiscal deficit, which is the objective that we share from all sectors. with the national government. We believe that reducing taxes that affect competitiveness and the extra costs that impact work, stimulate labor demands and punish SMEs are the way forward,” concluded José Tamborenea. The national industry is the engine that generates employment, social well-being and general growth for the country; it is essential that the competitiveness of SMEs and productive sectors be present in the restructuring of the State.